Eli Lilly shares soar on profit outlook, demand for weight-loss drug
Eli Lilly shares indicated higher after its 2024 profit forecast beat Wall Street estimates.
IGTV's Angeline Ong looks at why Eli Lilly and rival Novo Nordisk are likely to see their shares underpinned by the current supply and demand landscape for the drugs they produce.
(AI Video Summary)
Eli Lilly and Novo Nordisk share prices on the rise
The pharmaceutical company Eli Lilly & Co is expecting a huge profit in 2024 because more and more people are looking for drugs to help them lose weight. This is great news for the company, but it also means that there might not be enough of these drugs to go around. Eli Lilly's biggest competitor in this market, Novo Nordisk, is also experiencing success in the weight loss drug business. In fact, Novo Nordisk has even bought another company called Catalent to help them make and sell these drugs. Despite this, there might still not be enough of the ingredients needed to make these drugs.
Potential developments in the medical field
Because of the high demand for weight loss drugs, the prices of these pharmaceutical companies' stock are going up. And it's not just weight loss that these drugs could help with - they might also have other benefits, like improving fatty liver, metabolic dysfunction, sleep apnea, and chronic kidney disease. If the test results for these drugs continue to be positive and the companies keep expanding their facilities to make more of them, there is even more potential for profit.
This is especially likely because many people nowadays lead sedentary lifestyles and spend a lot of time looking at screens. These habits can lead to weight gain and more people wanting to find ways to lose weight. So, if you're thinking of investing in a pharmaceutical company, Eli Lilly and Novo Nordisk might be good options to consider.
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